Cargill’s Integrated Supply Chain -...

Cargill Integrated Supply Chain – SAP Leonardo Live © 2017 Cargill, Incorporated. All rights reserved.CONFIDENTIAL. This document contains Cargill Confidential information. Disclosure, use or reproduction outside Cargill or inside

Cargill, to or by those who do not have a need to know is prohibited. © 2017 Cargill, Incorporated. All rights reserved.www.cargill.com

Eric Johnson

Vice President Plant Operations

Cargill’s Integrated Supply Chain

TITLE

Cargill Integrated Supply Chain – SAP Leonardo Live © 2017 Cargill, Incorporated. All rights reserved.

Some of these changes we know well.

Other trends and their impacts are still unfolding.

Cargill’s approach to the changing world

Cargill Integrated Supply Chain – SAP Leonardo Live © 2017 Cargill, Incorporated. All rights reserved.3

Since our founding more

than 152 years ago,

we have remained a

privately held company,

which enables us to

plan and invest

through a long-term

lens, focused on

the future.


Our purpose

To be the leader in nourishing the world in a safe, responsible and

sustainable way.


Our core is strong and our reach

is global

150,000 employees in 70 countries


Capabilities

What will set us apart

Thought Leadership

and Stakeholder

Engagement

Trading and

Risk

Management

Sustainable

Supply

Chains

Digitalization

and

Analytics

Market

Insights and

Innovations

Cargill’s game plan for success

Purpose

Why we existCargill will be the leader in nourishing the world in a safe, responsible and sustainable way.

Vision

Where we

are going

We will be the most trusted partner in agriculture, food and nutrition.


Cargill’s Integrated Supply Chain


1Operating as One Team across

an integrated, end-to-end

supply chain

ZEROCreating ZERO Harm –

protecting people, communities and

the planet

1Capturing One Billion Dollars

annually in efficiencies, cost

improvements and value creation

Business Operations & Supply Chain


Cargill’s process framework


Cargill’s supply chain processes


Plan: Integrated Business Planning


Animal

Nutrition

Agricultural

Supply

Chain

Protein &

Salt

Food

Ingredients

& Bio-

Industrial

12

SAP – IBP activities across Cargill businesses


Supply Chain Planning Priorities

13

• Deploy Standard SCP minimum metrics and standard terminology

• Roll out playbooks for CIBP and foundational processes

• Support enterprise and group CIBP/Foundational process implementation

Cargill Integrated Business

Planning (CIBP)

Foundational Planning

Capabilities

Business

Review

Integrated

Operating

Review

Supply

Review

Demand

Review

Product

Management

Review

CIBPSupply Planning & Detailed

Scheduling

Inventory Planning

Demand Planning


Monthly planning cycle flow

14

Business Intelligence Input

CI

Portfolio Input

Enterprise

Others

Capability

Corporate Strategy Portfolio History Other

PMR

DR

SR

IOR

BR

Gro

up

Le

ve

l

MD

Le

ve

l

Group BRPreparation for Group

Business Review

En

terp

ris

e

Le

ve

l

cascade

20 working days 10 working days

Next cycle

Preparation for

Enterprise

Business Review

Enterprise BR

OUTCOME

PMR

DR

SR

IOR

BR

Week 1

Week 2Week 3

Week 4

OUTCOME

Group IOR

Issues as they arise

A monthly process discipline and synchronization is essential for the process to be effective.


IBP lessons learned

15

It’s all

about

data

Merge

business

and IT

Start

simple

Be

agile


SAP IBP chosen …

16

…as needed technology solution

IBP modules in use on active projects

S&OP Demand Response & Supply Inventory Control Tower

• Single data model

• What-if scenario capability

• User experience / interface

• Scalability

• Architecture flexibility

• System integration flexibility

• Cloud-based solution with

SaaS model


Source: Sourcing & Procurement


Design and implement a best practice

source-to-pay process using

technology solutions with a common

data foundation, based on industry

benchmarks for efficiency

and effectiveness.


• Standardization

• Compliance

• Governance

• Efficiency

• Disparate P2P

processes

• Inconsistent

supplier

management

• Varying internal

controls

• Inaccurate data

Current State Future State

Achieving best-in-class

19

Ariba, OpenText,

Existing ERPs

Ideal Technologies &

Integrations

Strong Partnerships

CSSP, CBS Finance, Legal,

D&BI, Businesses, Suppliers

Data, Procurement, Invoice-to-PayCore Pillars

People Strategy

Change, Communication, Education


Ariba drives our procure-to-pay process

20

AnalyzeSpend Procure

Invoice & Pay

Zycus

iAnalyze

SAP BI

Sourcing P2P

ERP/EPM

Ariba P2X

Ariba APC

ERPAriba

NetworkAriba CLM

Source

Ariba

Sourcing

Monitor & Manage

Various

Contract

Create

Requisition

Approve

Requisition

Create

Purchase Order

Receive Goods

& Services

Process Invoice

& Payment

Procurement Invoice & Pay

P2P (Procure-to-Pay)

AN (Ariba Network)

Invoicing

APC (Ariba

Procurement Content)

Invoice-to-Pay Solution


Make: Plant Operations


Data drives results in Plant Operations

22

QualitySafety & Security

EnergyUtilization

Process

Efficiency

Regulatory Performance

Asset Health

OperatorsCraftsmen

Supervisors

Process EngineersProduction Superintendents

COE Experts

Location ManagersRegional/Global OpsBusiness leadership

InboundProduction

Continuous - Batch

Production

Weigh, Pack, Label

Plant

InventoryOutboundQuality

Warehouse

Plant Performance Management


Different types of data…

23

…generate different types of intelligence and actions

Generates

ERP

MOMOperational

Intelligence

Control Systems / PLL

Input / Sensors / Controls

Process

Asset and

Process

Intelligence

Business

Intelligence

Level 1

Level 2

Level 3

Level 0

Generates

Generates


Shop Floor Solution – MII , Savigent

24

SAP Business Suite

(ECC, TM)

SAP

MII

Plant Systems

common plant system

messages

standardized

integration

Global

business - specific

Logical Landscape

plant users

cache &

re-post data


In combination with OSi- PI Data collection

Commonality increases the speed at which

we can mitigate risks and realize value


Deliver: Transportation & Logistics

Management


Why SAP Transportation Management?

27

TM was selected due to:

• Tight integration with ECC

• Ability to support multiple modes

• Optimization capabilities

• Capitalize on ROI

Desired common global TM:

• Leverage Consolidation activities

• Provide clear visibility to freight spend

• Harmonize carrier experience across Cargill

6,300users

875carriers

~1.5 millionfreight orders


Cargill’s SAP journey: Transportation Management

28

2010

TM 8.0

2015

TM 9.1

2017

TM 9.3TM 7.0

2008


What Transportation Management Brings to Cargill

29

• Automatic freight order planning

• Automatic tendering or carrier

assignment

• EDI and portal access for carriers to

reduce phone calls

• Reporting of exception cases

• Invoice screen helps resolve

discrepancies with carriers

• Match pay and tolerance process

reduces manual effort

Automation and Standardization


• Goods receipt & put-away to bins

Picking for staging & shipping

Stock transfers

Product dispositioning

Inventory counting

Gaining

experience with

Warehouse

Management


Purpose

Why we existCargill will be the leader in nourishing the world in a safe, responsible and sustainable way.

Vision

Where we are going We will be the most trusted partner in agriculture, food and nutrition.

Capabilities

What will set us apart

Thought Leadership

and Stakeholder

Engagement

Trading and

Risk

Management

Sustainable

Supply

Chains

Digitalization

and

Analytics

Market

Insights and

Innovations

Cargill’s Integrated Supply Chain -...

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